Jan 3 Lecture 1

Details – IS3318
• Ciara Heavin
• Room 3.85 ORB (3rd Floor)
• [email protected]
• 021 4903826
Can you answer this?
Four jolly men sat down to play;
And played all night till break of day;
They played for money and not for fun,
With separate scores for every one.
Yet when they came to square accounts,
They all had made quite fair amounts!
• Can you the paradox explain?
• If no one lost, how could all gain?
Can you answer this?
• What is the name of the famous city?
1. Understand the effects of information systems on business and
their relationship to globalization.
2. Explain why information systems are so essential in business
3. Define an information system and describe its management,
organization, and technology components.
NBA Teams Make a Slam Dunk with Information Technology
• Problem: Lack of hard data usable in decision-making
processes, costly and competitive market.
• Solutions: Developed a new system designed to collect
and organize data using video clips of games.
• Synergy Sports Technology tags video of each game with
hundreds of descriptive categories and allows coaches
and players to stream game footage from the Web.
• Demonstrates IT’s role in innovation and improving
business processes.
• Illustrates how the Web has allowed businesses to use
new tools to analyze critical data.
• NBA playoff games require even greater preparation than
games played during the regular season, and Synergy Sports
offers powerful and fast access to exactly the information
teams need to get ready for these important matchups.
NBA playoff teams use Synergy Sports to study their opponents
(and their own team) to formulate game plans going into each
round of the playoffs.
In my 11 years with the Phoenix Suns (1992-2003), I was
responsible for the video and analytics that our coaches used to
make critical decisions during both the regular season and
During post-season play, I spent countless hours creating 100+
page Playoff Reports to pull together information from our
advanced scout and traditional NBA stats, along with data from
the many proprietary analytics systems that I had developed for
the team.
• http://www.mysynergysports.com/playoffdataviews/index.htm
• http://en.wikipedia.org/wiki/Synergy_Sports_Technology
The Role of Information Systems in Business Today
• How information systems are transforming
• Increase in wireless technology use
• Shifts in media and advertising
• New federal security and accounting laws
• Globalization opportunities
• Internet has drastically reduced costs of operating on global scale
• Presents both challenges and opportunities
The Role of Information Systems in Business Today
Information Technology Capital Investment
Information technology investment, defined as hardware, software, and communications
equipment, grew from 32% to 51% between 1980 and 2008.
Source: Based on data in U.S. Department of Commerce, Bureau of Economic Analysis, National Income
and Product Accounts, 2008.
Figure 1-1
The Role of Information Systems in Business Today
• In the emerging, fully digital firm
• Significant business relationships are digitally enabled
and mediated
• Core business processes are accomplished through
digital networks
• Key corporate assets are managed digitally
• Digital firms offer greater flexibility in
organization and management
• Time shifting, space shifting
The Role of Information Systems in Business Today
Growing interdependence between ability to use
information technology and ability to implement
corporate strategies and achieve corporate goals
Business firms invest heavily in information
systems to achieve six strategic business
Operational excellence
New products, services, and business models
Customer and supplier intimacy
Improved decision making
Competitive advantage
The Role of Information Systems in Business Today
• Operational excellence:
• Improvement of efficiency to attain higher profitability
• Information systems, technology an important tool in
achieving greater efficiency and productivity
The Role of Information Systems in Business Today
• New products, services, and business
• Business model: describes how company produces,
delivers, and sells product or service to create wealth
• Information systems and technology a major enabling
tool for new products, services, business models
The Role of Information Systems in Business Today
• Customer and supplier intimacy:
• Serving customers well leads to customers returning,
which raises revenues and profits
• Intimacy with suppliers allows them to provide vital
inputs, which lowers costs
The Role of Information Systems in Business Today
• Improved decision making
• Without accurate information:
• Managers must use forecasts, best guesses, luck
• Leads to:
• Overproduction, underproduction of goods and services
• Misallocation of resources
• Poor response times
• Poor outcomes raise costs, lose customers
The Role of Information Systems in Business Today
• Competitive advantage
• Delivering better performance
• Charging less for superior products
• Responding to customers and suppliers in real time
The Role of Information Systems in Business Today
• Survival
• Information technologies as necessity of business
• May be:
• Industry-level changes
• Governmental regulations requiring record-keeping
The Role of Information Systems in Business Today
The Interdependence Between Organizations and Information
In contemporary systems there is a growing interdependence between a firm’s information systems
and its business capabilities. Changes in strategy, rules, and business processes increasingly
require changes in hardware, software, databases, and telecommunications. Often, what the
organization would like to do depends on what its systems will permit it to do.
Perspectives on Information Systems
• Information system:
• Set of interrelated components
• Collect, process, store, and distribute information
• Support decision making, coordination, and control
• Information vs. data
• Data are streams of raw facts
• Information is data shaped into meaningful form
Perspectives on Information Systems
Data and Information
Raw data from a supermarket checkout counter can be processed and organized to produce
meaningful information, such as the total unit sales of dish detergent or the total sales
revenue from dish detergent for a specific store or sales territory.
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